Future of Manchester branches of Patisserie Valerie uncertain after firm collapses into administration

The future of the Manchester branches of high street bakery Patisserie Valerie has been thrown into doubt after the company collapsed into administration.

It means jobs at three of the cake chain's cafés in Greater Manchester, as well as the 3,000 others nationwide, could be at risk.

The firm said discussions with its lenders HSBC and Barclays to extend a standstill agreement had come to nothing, leaving it with no option but to appoint KPMG as administrator.

The news comes after its parent company Patisserie Holdings has been grappling with the fallout of a huge accounting fraud.

The company said: "Patisserie Holdings plc announces today that, as a direct result of the significant fraud referred to in previous announcements, it has been unable to renew its bank facilities, and therefore regrettably the business does not have sufficient funding to meet its liabilities as they fall due."

(Image: Surrey Advertiser)

As well as around 200 Patisserie Valerie stores, the firm has 60 counters in Sainsbury's and owns Druckers and Flour Power City Bakery.

KPMG said that it would continue to trade 121 out of 200 stores, but added that 70 cafes and concessions would close over the next few days, resulting in a "significant number" of redundancies.

Mirror Online reports three of the stores in Manchester - on Oxford Street in the city centre, at Manchester Fort shopping park in Cheetham Hill and inside Next at Barton Square near The Trafford Centre are among those at risk.

The branch on Deansgate in the city centre is believed to be safe.

The branch on Oxford Street in the city centre is one of those now at risk (Image: Google Maps)

Blair Nimmo, head of restructuring at KPMG and joint administrator, added: "Our intention is to continue trading across the profitable stores, as collectively the brands have a strong presence on the high street and have proven very popular with consumers.

"At the same time, we will be seeking a buyer for the business and are hopeful of a good level of interest.